The court ruled that an application to set aside an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 is strict in nature with a non-extendable time limit, and appeals filed beyond this limit are time barred.

ORAL JUDGMENT

Date : 11-12-2025

Heard the parties.

2. The present application has been preferred against the judgment dated 07/04/2025 passed by the learned Principal District and Sessions Judge, Patna in Arbitration Case No 18/2024. [The Union of India Through Assistant General Manager, Engineer (Civil), Airports Authority of India, Gaya Airport, Gaya- 923004 Bihar vs. Brajesh Kumar Sinha] as also Award dated 31.05.2023 passed by the sole Arbitrator by which the case of the sole claimant-respondent was allowed and the appellants were directed to pay the Award amount within 90 days.

3. The matrix of facts giving rise to the present appeal is/are as follows:

4. Tenders were invited through the e-tendering portal by the Assistant G.M. (E-C), AAI, Gaya Airport (Bid Manager) on behalf of Chairman, Airports Authority of India (henceforth for short ‘the AAI’), on 07.11.2016 from the eligible contractors for the Construction of the Property Boundary Wall of ‘the AAI’ land situated at Gaya Airport, Gaya at an estimated cost of Rs.2,12,07,560.00 with the completion period of six months. The scope of work included RCC footing, RCC column, RCC Plinth beam, brick work etc. The last date and time of sale of tender document was 07.11.2016 while the last date for submission of e-bid was 17.12.2016.

5. The claimant-respondent thereafter submitted his application form along with other candidates within the stipulated period and time i.e. 02.12.2016 and after completion of paraphernalia, the claimant respondent was selected for the above captioned work.

6. This followed the issuance of the Letter of Appointment on 04.01.2017 for the work mentioned above at the item rates quoted by him totaling to Rs.1,25,77,245/- (Rs. One Crore Twenty Five Lakhs Seventy Seven thousand Two hundred & Forty Five only) which was 40.69% below the estimated cost of tender of Rs. 2,12,07,560/- (Rupees Two Crores Twelve Lacs Seven Thousand Five Hundred & Sixty only). The claimant respondent was acknowledged about conversion of Earnest Money Amount of Rs. 4,24,152/- (Rupees Four Lakhs Twenty Four Thousand One Hundred Fifty Two only) into SECURITY DEPOSIT, as per condition number 15 of the contract document.

7. The further direction to the claimant respondent was to deposit the remaining amount of Security Deposit i.e. Rs. 8,33,573/- (Rupees Eight Lakhs Thirty Three Thousand Five Hundred & Seventy Three only) within ten days from the date of issue of the letter, failing which, the same will be deducted as per condition 13(iii) of the tender/contract document.

8. The claimant respondent was further asked to be present before the Assistant General Manager (E-C), of ‘the AAO’ Gaya Airport, Gaya, the in-charge of the contract, to sign and complete the contract agreement on 15.01.2017.

9. Thereafter, the Contract Agreement No- AAI/GAYA/AGM/Engg(c) 03/2016-17 dated 19.01.2017 signed and executed between ‘the AAI’ and Brajesh Kumar Sinha, the claimant-respondent.

10. The contention is that there was no dispute on the proposed property regarding title and possession of said property of the Gaya Airport and the State Agencies demarcated the said property/premises which was proposed to be boundary walled.

11. The claimant respondent accordingly started construction work without any hindrance and being satisfied with the performance of the claimant-respondent, the appellants cleared the 1^st Running Account Bill(R/A Bill) without any dispute for the work done up to 31.03.2017.

12. On 03.04